A good time to lock that mortgage rate?

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Mortgage rates on their way up

Analysts are arguing that due to the problems in the U.S. subprime mortgage market, mortgage rates have hit multiyear highs, and there could be worse to come before things settle down. It is costing the banks and other lenders more to raise the money they use to finance mortgages, and they’re passing the cost on to people buying homes and refinancing existing mortgages.

The posted rate at the major banks for five-year mortgages is as much as 7.44 per cent right now, the highest level since May, 2002. New variable-rate mortgages are becoming more expensive almost by the day. This is, however, not effecting existing variable-rate mortgages.

If you are currently looking for a house or have a mortgage expiring in the next three or four months, you should talk to lenders right now to lock in the best possible rate. A 90-day or 120-day rate guarantee is pretty common these days and it offers a shield against further rate increases.

Mortgage rates

Big Six banks

Bank of Montreal Mortgage 7.44%

Bank of Nova Scotia 7.44%

CIBC Mortgages 7.44%

National Bank 7.40%

Royal Bank of Canada 7.40%

T-D Mortgage 7.44%

Who has the lowest rates

ICICI Bank Canada 5.75%

Canadian Tire Bank 5.85%

Manulife Bank 5.85%